It is no secret that your average homeowner’s insurance policy does not provide coverage for flood damage. In fact, most homeowners opt out of the option to have a policy of insurance exclusively designed for flood damage unless they live in a flood prone area. If this is you, you might be making a big, but common, mistake.
Before I go any further, let’s define “flood”. To most people, it’s a rising or overflow of water in an area that is ordinarily dry. But, what do the insurance companies say? Well under ordinary homeowners insurance, a “flood” occurs from bottom up. This means that if there is a pooling of water from a roof leak, for example, this is not a flood and ensuing damages will be covered under standard homeowner’s insurance. But, if water rushes in from underneath your front door into your living room, this is a flood (and a big issue, might I add).
According to the Federal Emergency Management Agency (FEMA), flood damage is the most catastrophic and costly disaster, estimated at about $25,000.00 in damage, per inch of flooding. That is a huge risk for any property owner to take on and a hefty price to pay in repairs should disaster strike. While FEMA is a great resource in an emergency situation, their coverage can be
quite limited so you shouldn’t rely solely on FEMA’s emergency aid. Instead, consider purchasing a flood policy though the National Flood Insurance Program (NFIP) or by way of private insurance, to secure your investment. In your search, be sure that your policy provides coverage for both your dwelling and personal effects to ensure that if not all, most of your biggest assets remain secure.
The point I am making is simply this – consider your risk and purchase flood insurance. The reality is, wherever it has the potential to rain, it also has the potential to flood. The last thing you want to do is wish you did. Flood insurance is a small price to pay for the peace of mind that it provides.
Lastly, don’t wait until it’s too late. Flood insurance policies do not go into effect until 30 days after purchase. So for those who live in storm prone areas, you may not want to wait until the start of the wet season to start looking into flood insurance.
Of course, know that we are here to help!
Our Attorneys here at the Cohen Law Group are dedicated to assisting you in any way that we can. If you find yourself in a legal bind, call one of our experienced attorneys for a free consultation. We are ALWAYS happy to help!
Dana Satchell, ESQ.
